Congessional Budget Office

Stop allowing Budgetary Continuing Resolutions (or do a study)

Continuing Resolutions cause contractors to be layed off when contracts cannot be renewed. This has a significant negative impact on our economy, impacts the moral of the American people and hurts individuals directly and indirectly.


1) The uncertainty of a pending shutdown causes governement personnel to spend time and resources preparing for the shutdown. Whether it comes or not the time is spent and resources are wasted.


2) Contracts cannot be rebid resulting in skilled people being layed off. The big immediate hit to government is that these contractors often have institutional and system knowledge that takes months to develop. When a contractor gets layed off they seek employment elsewhere so they may not return to the replacemnt contract when that is finally bid and awarded. The reality of contracting is that when a new firm wins a contract form an incumbent they often hire many of the incumbent's current employees. The Contract owner changed but the same people are doing the actual work. When a Layoff forces them to leave that experience and knowledge leave with them. When the contract is finally re-awarded there is an increased cost due to knowledge ramp up.


At the very least if a Continuing Resolution goes into effect it should extend all contracts that would expire during the Continuting Resolution period until the new budget takes effect and contracts can be re-awarded.


3) While the shenanigans provide fine fodder and income for the news media they result in uncertainty, vascilation and accompanying drop in moral of the general public. The resulting behavior reduces spending in a service oriented economy hurting the economy overall.


I suggest the government form a study group to evaluate the costs and benefits of the practice of having Continuing Resolutions and what practices should be put in place to mitigate negative impacts.

I agree to have my idea, not my name or information, posted online. YES


Idea No. 812